Inferior good and giffen goods

1.	Inferior good and giffen goods
Answer» Inferior goods: are such goods that have an inverse relation between the income of the consumer and demand of the good. Example - air coolers are inferior goods, if on the increase of the income of consumer, the demand of coolers decrease as the consumer would now like to buy Air conditioners.Giffen goods: are the special type of inferior goods in which the price effect is negative. Example - bread is a giffen good for a poor person. Because when there is an increase in the price of bread, the demand of bread may also go up.

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